tv Squawk Box CNBC August 4, 2015 6:00am-9:01am EDT
good morning and welcome to squawk box here on cnbc. i'm michelle along with joe kernen and scott. becky and andrew are off today. no relief in sight for firefighters and residents in california. 144,000 acres destroyed by fire making it one of the biggest fires in recent history. over 13,000 people have been he vak -- evacuated. stocks in china surging on new rules to crack down on short selling. one would prevent borrowing and repaying shares on the same day. mark made comments earlier today on cnbc. >> they are desperate to try to keep this market up. and they're trying every rule in the book to do that. unfortunately as you know the more they do the more uncertainty is imposed on the market. >> something we have long discussed on this show.
the government trying to prevent a collapse of the country's markets which lost nearly 30% since june. the news helping to spark a rally today. a gain of more than 3% in shanghai and shenzhen we have seen the imagine higher by nearly 5%. keep in mind you go down 30% you have to go up a lot more than that in order to recover. here's the greek stock exchange. market there open for a second straight day after it's five week closure. down by only 1% today after the big pummeling it took yesterday after reopening and the u.s. futures at this hour suggest that we're going to have slightly negative open. the dow lower by 15 points and s&p by 2 and nasdaq by 4. >> he is dismissing claims that oversupply is driving down prices and he believes the end of the broader commodity's route is in sight. let's check oil prices right now. you can see above $45, not by
that much. up by one and three quarters per cent. it's a nice gain after the sell off in recent days. >> brent had gone below 50. >> that was the big headline. west texas has been below 50 for awhile. he makes kind of an interesting -- kind of an interesting looking outfit and everything as he is there talking, isn't he? >> the collar and t you know shaved head and everything. he almost looked like his head was floating above because it's just -- >> all black like that. >> yeah okay. just interesting. >> sort of -- i mean certainly lends credibility to what he's saying when he looks like that doesn't he? >> scary, stern? >> got the sneakers on and the quarters in his -- >> come on. >> that's kind of weird looking, isn't it? to each his own, right? actually, who am i talk to about wearing weird shoes. you got those on again today don't you?
>> no quarters. no quarters in your pocket. you're not waiting for the planet -- >> no i'm optimistic. >> disney disney is the dow component to watch today. the magic kingdom set to report it's quarterly results that will include the stellar performance of the avengers sequel the age of ultron. analysts expect revenue to grow by 6% while profits are expected to rise by 11%. analysts say the biggest head winds were strong exchange rates and investors will be listening for my pressure we have been talking about on espn. we had a big conversation about disney yesterday. the stock up more than 40% in the last 12 months and we had rich on who has been out finally 40% worth. >> you want to get out of disney
in front of star wars and shanghai. go ahead and get out. >> he was so focused on the issue of people -- >> cord cutting. >> cord cutting. it's nice to be early. it's nice -- well not always good to be early as you know but it's good to be -- at your age you might. >> i thought it was when you're younger. >> can be. you start in diapers and you end in diapers. things come back. >> 4.5 minutes in. not even. >> check out shares of apple. >> 4.5 minutes, in your dreams. >> to the show. >> to the show. >> i can't believe it. >> the dow component is in correction territory. it's been in a correction ever since it was added to the dow. thanks for doing that. s&p. down nearly 11% for its high on the year. it hit 134 share back on april 28th when everyone continued to
be universally bullish at $780 billion in market cap. there were still people talking about it doubling again. >> most people are still bullish. >> except you. >> i know they are still bullish and it's nice. valuations based on current earnings that's a great way to look at things except all you really need to know is you're at 784 billion and we've never had a trillion dollar market cap company. this might be the first one. it's just that we had other companies try to get there. sis coe and google and microsoft in general. others have gotten the 600 billion. maybe it gets there but on the way to a trillion we're now at 670. could be 550. >> do you think that the slide in apple shares has more to do with the overall market. >> no i don't. >> apple fundamentally. >> no not at all. >> you don't think people getting out of the market you're going to cash in your chips on a place like apple. >> do you think it's a company's
birth right to sell that many and no one will ever come around with a better mouse trap for the iphone 6. >> 49 billion in revenue in a quarter, you think that's just an annuity. >> sentiment hasn't changed but sentiment on the market has changed more than on apple. people are cashing in on the stocks. >> when they added apple to the market i said that's common on the market. apple. it's all related. it's not one follows the other. and the thing is scott, that over 25 years of watching when was it 1981, whenever anything gets universally loved everybody that loves it is already in. there's a lot of guys underrepresented. if you don't think the good news on apple was well-known by everyone in the world at 784 billion, it was and it doesn't matter. you don't even have to know how
something unfortunate happened. >> are you saying that was the top? >> i don't know. so far, you've had a chance to buy it on weakness. it may go back there. it may go to a trillion dollars. >> there's a reason the expression no tree grows to the sky. there's a reason that always comes true. >> of course but if overall sentiment of the market changed don't you think apple would anticipate meaningfully in a run up in the market again. >> we haven't made gains for 2015 but apple being such a big component of the overall market you can't even separate the two. all the same thing. >> if apple was not in the dow today would it be where it is today? >> i don't think it's a justifiable question. >> it's not a cause and effect. it's just the symptom. >> it's put there because of all the things he's talking about. >> no one was ever going to replace sis coe or do what
microsoft did or what any of these companies ever did again. it's hard to stay on top, especially with technology. you're talking about gadgets. google i could even understand. i could understand google having a higher value but having your whole future dependent on selling that many new iphones and they get more and more dependent. >> do you remember the flip phone? >> yeah they barely tapped the chinese market. >> that's what people say. >> and even global smartphones are still, you know plenty of room to move higher in terms of the totals. >> these best emerging markets. >> but you better hope that what's the chinese? there are other smartphone makers and not to say that am will stay in front forever but
it's not guarenteed that you do that in revenue. >> don't you think that's why the one reason people always come on is because a multiple is so cheap. >> right. >> but analysts only look at the multiple and just hang their hat on that and their whole career that this is going to happen because of the multiple is ten times earnings you don't these those guys to invest your money for you. they can think about fundamentals but whether it's a good time to buy. >> you make a choice of where you want to invest. let's go back 750 to a trillion think about what other stock is far more likely or what other small cap or mid cap based on the small and large numbers is going to have that much more of a gain which is so good. >> the one other thing that is the -- in the past the aol and
the people that get really fervrent. if you don't buy completely into their story they're nasty. >> of course they do. >> so over the next two or three years would you rather own apple or exxon or chevron? >> me myself exxon. >> i would buy exxon and chevron, yes. >> we don't think that. >> the market sentiment is so negative on oil and yet they're not going out of business. >> the real question is does it being the first trillion dollar company. i don't know. >> who knows? who cares. >> but how long? >> it makes a difference because if you bought it at 784 and you thought it was a growth stock to get to a trillion it's only 20 or 30%. it's probably not going to double again and people that got in early saw it double and double and double again and again and again.
>> it was a $9 million market cap. then they put it in the dow. then they put it in the dow. thank you, brilliant. anyway, go ahead. >> aig reporting earnings but it's okay. go ahead. >> toyota. toyota is out with earnings as well earlier this morning. >> well it's been a winning formula for toyota for a couple of quarters and they did it again this one. the weaker yen, the japanese currency combined with strong sells in the u.s. market pushing up their quarterly profits to yet another record. this is a record for three years running. operating profits are up 9% but these higher profitabilities
coming despite weaker sales. sales in the u.s. market are strong but everywhere else sales are down year on year. russia they say is so volatile they can't give a forecast for the remainder of the year. other key southeast asian markets like indonesia and thailand where toyota has been very strong. sales are down there as well. as far as china is concerned, right now they say sales have not been impacted by the melt downs we have seen in the equity markets but they say they are concerned about profitability going forward which suggests they're having to pay more incentives to move product off the shelves. here's what the cfo had to say. >> sales are robust but we can't be optimistic about profitability. costs are going up and price points are coming down. it's a very difficult sales environment. >> in a way, though toyota has been more cautious in the china markets compared to the european rivals and germans or u.s. auto
makers and it's paying off for now but they say the slow down in the second quarter, particularly with the equity market plunge and the hit and the bloat to consumer confidence they're very worried about profitability in the second half of this year but overall a stellar report card from toyota thanks to the weaker yen capping up a pretty strok earnings season for the japanese auto makers here. back to you. >> thank you so much. >> thank you. >> august getting off to a rough start as a major average closed out the first trading day lower. went down to double digits. it was triple digits most of the day. the slump in oil and apple weighing on stocks. august is a historically tough month for the markets. posted negative returns over the last 20 years. let's bring in jonathan. going according to plan in the last fua appearances.
>> i see an economy that looks soggy and china dragging down commodity prices but earnings are coming in great. >> i don't think people use that expression. at the end of the day. >> you could use it every sentence and it would still be good to use. along with going forward. so who really cares going forward. >> right. >> in your view it's how much total. >> i don't think the market pulls back here. the key is what happens in september with the fed. if the fed moves in september what they're going to be telling the market is this is not a broken economy and we can move forward. if the fed moves off and sells us you can't get to 25 basis points without breaking the economy they're telling investors they should move to the sidelines. >> i was giving you credit for calling for correction four months ago.
>> that was somebody else joe. you may have given me credit but we have been optimistic. earnings numbers are coming in well. >> you should have. >> right. taken credit. but the market hasn't corrected. >> you should have gone with it what are you looking for for the year? we're nowhere in 2015. >> how do you feel about periodapple? >> the multiple -- >> that's about three years ago. not at 784. >> i had to come in last show and tell you the buy apple though. >> i think that the real disconnect here is that we have an economy that looks weak and i think you have a market that's going to do better. earnings are coming in. way better than people think. >> you're on a lot aren't you? >> it could be. it's you know t two handsome
strategists. >> right. >> you lost a ton of weight. >> i have. i'm working on it yeah. when the market goes up i'll start eating again. >> the market is going to be able to handle the 25 basis point increase. there's some head winds in china and oil. >> but it's not that the market can handle it. the market wants that. one of the things we have done we published it this past week is on days when interest rates go up the market rallies and when interest rates drop the market falls. it's a sign of confidence. if they don't have the confidence to go to 25 basis points why should you be an investor. >> we're down below 18,000 and you think if people like certain names they should buy them. >> if you belief it's a temporary thing sure. but we're in a low volatility environment. it's down around 13. this is not a buy -- i don't
think it's a buy environment. get in get in now. >> you saw the chart. the previous one. the chart for 8 or 9 months has been churning around. let me ask you this when that finally goes one way or the other will that break out and head higher or head lower? >> 100% higher? >> lit double or you're sure it will be 10% higher. >> you'll probably be well over 50% higher than now but if you said between now and the end of the year high single digits. >> so when you said 100% you didn't mean 100% market. >> no 100% certainty. >> it's all about my certainty though. >> thank you. we're out of time. >> all right. >> you're nearby aren't you? you can walk over here. >> whenever you want me. 6:00 a.m. is my time slot. >> seeing as how you called for the correction maybe you're -- >> coming up we'll talk about your diet afterwards.
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be with you in just a minute. welcome back to squawk box. john john got to hear from senator ted cruz in our delivering alpha conference where he layed out his economic vision for a wall street audience. >> how do we deliver alpha in government? do we think washington is performing the way it should or could it perform at a far better level and how do you measure performance for government? i would suggest a couple of things. number one, gdp growth. my number one priority in office is economic growth because it's foundational for opportunity. i think a lot of people in this room respect an economy. they're not looking to government for a handout but they also don't want government shaking them down like
enforcers. they want to let the market decide. if you think washington is going great, that we just need someone to fiddle around the edges, then i ain't your guy. >> well to see a full conversation with senator cruz and for our complete coverage of delivering alpha, visit delivering alpha.com. >> the latest nbc news wall street journal poll is out and the main take away americans are feeling discouraged by the state of the union. the proportion of americans that think the country is headed in the wrong direction now 65%. results also show that just 25% expect the economy to improve in the next year and that is is compared to 21% in march. we'll have much more on those results in the next hour. >> crude oil plunging nearly 20% in the past month and some countries with oil focused economies nearing their breaking point. venezuela and nigeria being the most vulnerable according to our next guest.
she's the chief commodity strategist. good to have you here. >> thank you for having me. >> the footage and stories over over the weekend. devastating. looting. people are starving. >> absolutely. you think about which could be first to fall. they're going into elections this year. there's tremendous discontent with the government but the government is intent on staying in power so you could see more unrest and more violence and so there's no easy off ramp for countries like venezuela. >> what about assassinations? >> be watching for something like that. i always say the last people he's not going to pay are the military and toil military military and oil workers. so you starve your population in necessary to stay in power. >> what does that mean? you're a commodity analyst? is the oil price going to stay this low? >> what you want to watch is if you have problems in venezuela
does it lead to oil being shut in? it did in the early 2000s. nigeria is more where the unrest that's where you could see supply disruptions. so a country like saudi arabia is also fascinating to watch. saudi arabia is the country to watch in terms of do they pull the plug on the policy. when do they decide the pain is enough? >> you mean in terms of raising production. not subsidizing the popular because of the money. >> they have the luxury of saying we'll continue to pay off the citizens to keep you out of the streets. but it does tremendous damage to their fiscal position and they'll be running debt again and at what point do they say we can't take this price environment anymore. >> and they restrict supply. >> what saudi is doing is saying somebody else should balance the market. we're the low cost producer. russia, you sign up for a cut and we'll do it or shell
producers we're not shutting in. every producing country saying we're going to produce as much as possible and somebody else should sit out. >> you think $30 is more likely or 70? >> right now we could retest the lows. you could get in your situation of 40. joe is looking at me like you're wrong again. >> i'm not looking. >> there is a situation where we're going to stay prolonged in the 30s, no? do i think the demand growth that we've seen potentially provides a floor around 50? yes. but the problem with 70 is if every producer is going to go flat out it is a race to the bottom. the demand alone may not pull us to 60 right now. >> what's your assessment of china and what impact that's having on demand. >> the question is fascinating. everybody is concerned about the gdp numbers but for this year chinese demand is it strong. indian demand is strong but that's the killer. if you say how can we get to 30? it would be any real signs that chinese crude demand is slowing.
they don't care about filling up strategic petroleum reserves. it's finally impacting demand for oil. >> i understand why india would be gobbling it up. they would be the one country in the world that does better than everybody else when the price of oil falls, correct? >> the one bright spot for the oil market has been india but chinese demand surprisingly has held up this year for the oil market. so it's one of those situations where in a low price environment certain countries will be buyers. >> chinese demand is flat or growing? >> it's growing this year. up about 7% this year. >> what was it five years ago? >> it's not the explosive growth rates but people expected a situation where we would be almost flat this year but the problem with this oil market right now is even if chinese growth is better than expected it's not enough with the supply story so overwhelming.
when i went to the opec seminar there was optimism that the demand would save the market. they jump up on stage and say the future looks bright for oil. it will be a demand driven recovery but the problem is if every producer is going to go flat out in terms of production demand can only take you so far. it's a death spiral at this point for the oil market. >> to me it sounds like a market. >> at a srn point it becomes a market that's overflooded. >> exxon or alpha? >> i'm still a long-term bull. what i say is you take 200 billion in capex out of the market which is essentially happened. you have natural decline rates. at some point this market should balance but the problem is do we get to 70 by year end? it's increasingly looking unlikely. can you get to 70 next year? if producers start to scale back
yes but i'm an optimist over the medium term. >> good to have you on. >> that means apple. it's not apples to apples. no you can buy exxon twice. that's the point. coming up stocks to watch including fresh results from aetna that were really strong and amazon is worried about sharing. especially your prime account. that story right after the break. as we head to break which i just mentioned a look at yesterday's s&p 500 winners and losers. ♪
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the company reported earnings this morning of $2.05 a share and that beat estimates of $1.82. the pane also raised it's forecast for the four year. 720 to 740. now it's 740 on better than expected performance in it's medicare and medicaid business. the company reported 15.24. that is a little bit shy on revenue. time inc also beat estimates earning 27 cent ace share. the estimate was for 15 cents. despite weaker print add sales
and the negative impact of the stronger dollar. >> aig turning in it's report card $1.39 a share which beat estimates of $1.22. aig boosting it's share buy back by up to $5 billion and raising it's dividend 124% to 28 cents. amazon prime members the company is trying to make it more difficult to share the popular service. tech crunch reports new subscribers will only be able to split the service between two adults and add up to four children in order to share prime benefits. they must be authorized to use debit or credit cards on file. i didn't know you could share prime. >> neither did i. >> so are you a prime member and your wife is a prime member? >> no. but we don't use it for video. we use it for deliveries. >> right. >> i don't know. the packages show up in two
days. >> like every day, right. >> literally. check out shares of twitter meantime. the social networking company trading at its lowest level since it's ipo slumping below $30 a share. man this has been joe a big slide. just can't get out of its own way at this point. >> i don't understand how you monetize it. when you get an add that you don't follow i click the x and say not relevant. i don't like when they send me stuff. >> you take long enough to decide if you don't like it or not. >> i don't follow many people. that's why. >> i follow a lot of people. >> how many? >> nearly a thousand. >> i try to keep it around 100. >> but you follow me right? >> i don't think i do. >> it breaks my heart they can't monetize. i love twitter. >> i hope for the day when there's no twitter. >> no you like twitter.
>> no i don't. where everything gets blown out of proportion. do you know how many lions have been killed in the past 30 years that we didn't know anything about. that's a total twitter story right there. right? i love cecil. i love him. he's regal and beautiful and we have to find that dennis and do the same thing to him. >> do you like the stock? >> i don't. >> has it surprised you at how -- >> i'm worried about facebook too. i can't believe that the market cap -- >> they're going in two different directions. >> the metadata is going to be used to customize anything you want to sell to anyone you're going to know exactly how to do it. that's sort of why it's worth -- it's getting close to that. >> that's unbelievable to me. i love twitter so much more than facebook. >> you can't use instagram instead of twitter because twitter cannot grow it's monthly active user which is everybody
talks about. it's stuck at around 300 and whatever million and they're looking for a new ceo so lack of confidence in the fundamentals of the company. yesterday the stock was down 6%. bob peck who is the really well-known and respected analyst at suntrust was on squawk alley and stock was already down about 3%. he moved the stock all over the place at different times and said even with a new ceo he has to see a change if fundamentals before he'll get more optimistic. the stock went down another 3% partly to do with his comments. >> there's people that make a great case for twitter if you get the right ceo. i don't know. i don't know how anyone makes it a big money making venture. i don't know how you do it? >> you amass all the people on all the time and so interested in the content going by high engagement and you can't monetize it. i don't know how to solve it obviously but it astounds me the inability to do it.
>> their monitization is increasing. they're performing on that metric well but they can't grow their user base. they cannot grow their user base. can you get a giant section of the country that is not interested in twitter. >> or the world. >> to get on to it where as almost everybody feels like -- everybody is on facebook. your grandmother is on gook. your kids are on facebook or whatever. >> joe's not on facebook. >> i'm not on facebook either. i never use it. >> then i don't understand the bullish case. >> for facebook. >> not that you're the proxy. >> i'm not making a bullish or bearish bearish. >> but there is a bullish case. it's almost $300 billion. >> they have metadata. >> they have 1 million users and they're growing that.
>> i know. >> is the most of the country overwhelmingly on twitter? probably not. >> journalists love it. >> coming up it's a time for investors to check into choice hotels? ceo of that hotel chain tells us about expansion plans, rebranding and the desire to do business in cuba. you're watching cnbc. first in business worldwide.
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sell off we saw yesterday and brent is back above 50 this morning but barely. >> choice hotels out with second quarter earnings that beat the streets estimates but the company getting a mixed reception from analysts with shares dropping more than 4% in the last week alone. here with us now is steve joyce. the president and ceo of choice hotels international. >> good morning. >> we start there. stocks down like 20% or so over the last three months. >> mixed would be kind. >> why is that? >> there's a couple of things going on but the fundamental for us is business is great. we had a great quarter. we exceeded expectations: business continues to be great. we think we're in the middle of another three years at least through '18. the fundamentals and supply and demand are solid. >> what's the street missing then? >> what they're looking at i think is they're waiting for the turn. so they're looking for the indication of the cycle is over and it's time to move on to something else so they look for any indication in our case we
raised our higher guidance by 50 basis points down from 8 to 7.5% and we got a negative reaction. our view is in the short run sure but we have mostly long-term holders in our stock. they're very confident in our position. we're doing very well so while we're not pleased with it this too shall pass. >> you have how many hotels in new york? >> no new york about 15. >> 15. >> what does upscale mean to choice? >> it's not what you guys think. >> i do like -- if you're going to drive around the country and you want to stop you get a descent -- you have kids and you can get a suite. what's the place where i got a suite. >> comfort suite. >> okay. clean. >> free wifi. >> free wifi and a buffet breakfast and it's clean. >> and you park and you're not
in new york city but you're out on the road driving around. >> but we just opened a hotel and suites in chelsea which is beautiful. >> what does that cost? >> probably average rate there will be around 300. >> which is cheaper. >> bargain in new york so it's a beautiful property and down in the flower district. it's a hip area so it's a great place to be. it's open full already and we'll open one in times square this fall. >> what would you do in europe? like where on the road over there? >> in the city. >> europe is interesting because europe is mostly unbranded and wants to be branded because of the distribution environment. because they can't compete on their own, independent hotels. because of otas and google and the difficulty of people booking on mobile and independent hotels not being able to keep up. it's mostly conversion.
that's what we do better than almost anybody so we view that as a huge opportunity for us. >> it will be comfort and quality and -- >> excuse me. i'll sorry. >> we're big in the u. kflt. we like france. we like germany but we also just entered turkey and we think that's a great market for us. we like eastern europe. we think that will be expanding. there's a lot of opportunity there. the core though is in traditional europe in urban settings anded by block buildings with six room types and a small elevator. we love those properties and we're going to sign them up. >> you told us you're going to head to cuba zoo soon to see the opportunities there. >> why. >> that island is the closest. u.s. historic ties. americans want to be there and it's such a big beautiful island that that is going to take a lot of the investment out of the rest of the caribbean. you'll see it going around -- if you can deal with the issues with the government.
>> the cuban government. not the u.s. government. >> like the fact that they employ the people and you don't. like they take most of the investment. like the fact that it's not necessarily a friendly open environment to do business with at this point. but our sense is that's going to change. >> better to get in early than late. >> no early is over because the spanish and european companies have been over for years. >> as an american company. >> as an american company we want to be there. it's going to be an on going opportunity. we want to be at the front end of it and we're starting to talk to folks already. we think it's going to be a very interesting environment to get into but it's got lots of issues. >> so that goes back to your upscale moves. so you have one in chelsea. if it's not in new york city what would upscale look like in the rest of the country and how much would it cost? >> 150 to 200 in most cities. >> for upscale. >> for upscale. so what that means is we're not going to -- we don't have a doorman we will help you with your bag and have a bar in a
restaurant but there's not a lot of things you don't use. it's in a category that would allow us to be in urban settings because most of our brands are hard to do because of the cost. we just opened another one in new york called the paul down in chelsea as well which is a great hotel. that gives us the opportunity for our guests and we have millions of people that want to come to new york city or chicago or san francisco, this is how we're getting hotels for them to stay at. >> right. do you use twitter? >> i do. >> company? >> we absolutely do. >> facebook. >> company does. i don't. >> my kids do. >> would you buy exxon or apple? >> actually i think -- >> did you see birdman? the speech she gives to her father? you're irrelevant you don't matter anyway. i watched that and i was like twitching because i was like it's me. >> we use it to reach out to our
customers. i personally do not. >> right. >> and i probably am irrelevant but i'm very comfortable with that. >> coming up are the machines really out to get us and is your job risk really from robots? why today's workers should concentrate on skills and abilities that require a human touch. time to get fully aware. >> is this a massage segment? >> we'll see. squawk box will be right back. then it would be easy to know everything about that one breed. but in fact, there are over three hundred breeds of dogs. because no one can be an expert in every one... an app powered by ibm watson will help vets tap specialized knowledge in the cloud for every breed... and whatever else walks, flies or slithers through the door. ibm watson is working to make medicine smarter every day.
machines are becoming more confident and able to complete tasks from supermarket checkouts to vacuuming your house. the unique skill set of actual humans may be in danger. jeff coleman is the author of humans are underrated. >> they are. >> as well as senior editor at large for "fortune." we talk about this a lot when andrew is here. the disruption and the way the technology is moving now is fundamentally different than it's been in the past. now it's different and many of us are going to be out of work. >> yeah. >> is that true? is it worse now than it's ever been in terms of machines taking over? >> yes, there's absolutely true. a lot of mainstream economists who say the la diets were wrong
and they were wrong, it may be that technology is eliminating jobs faster than it's creating new jobs and that's never happened before. >> is this a how to stay relevant? do we need to emphasize humanity? >> how are you going to create value, how are people going to make money when technology makes things better than people do. technology drives cars better than people do now, that's established. technology can go through documents in a legal case for relevance better than lawyers can do. this is high value stuff. >> have you thought about ail rhythms and financial management and computers that buy and sell? >> robo advisers? >> robo advisers. >> that's already growing. >> why not? >> and the technology can do that can do the calculations can do the financial analysis better than humans can, so how
are humans going to add value? >> tell us how. >> through the deeply essentially humans skills of personal interaction. you talk to financial advisers they say, look the technology can do all the analysis. i saw one quoted saying what i mostly do now is be a psychiatrist. financial stuff is deeply emotional. >> but people need to talk to someone. >> you'll need a psychiatrist though if the machine is doing everything. >> no. i think money management is a deeply personal thing. suze orman is so successful because of that. >> people don't have face-to-face meetings anymore. the relationships they have is facebook and twitter. >> that's a big problem because as a result of that -- and there's research on this -- they are losing the skills. the slow skills are attry fewing. being able to connect what someone else is feeling -- >> empathy. >> empathy.
they're getting worse at it. if you ask employers, that word comes up over and over. they want people with these skills. >> you're not even going to drive a car in like ten years. >> no. because the technology will do it better. and look the largest job, the number one job among american men is truck driver. it's going to go away and there's very little human interaction in that job. >> tell me why you think this time is different. if we were still forcing women to switch phones on the telephone lines, we would have to employ every single person in the world to connect all the phones. >> that's right. look technology over time has always improved living standards and increased employment right? it has been spectacularly successful. >> tell me why this time is different. >> because the technology is advancing faster and faster every time. >> everybody always thinks that. >> they do always think that. >> marco polo probably thought
that. >> he probably did. >> women are much better at all of these things than men and we don't need to research -- as the human skills become more valuable, women are going to be totally at an advantage. >> i don't believe that. >> you're the only person i've ever met who didn't -- >> i went to a women's college and we had these discussions if women ruled the warorld would there be no war. give me a break. >> discerning what someone else is thinking and feeling, it's very clear that women are better at that than men. when it comes to building relationships, making connections, women do that much better than men. >> thank you. the machines are taking us to a break right now. >> yeah you got to obey. >> humans are underrated. >> not to great news for the early front runners, what the
are here to talk pessimism, the g.o.p. debate and the donald. >> the latest in a series of moves to prevent a market collapse. stocks rebounding sharply. we'll take a closer look. a new move from instagram could make it a major player in advertising. the social network taking on twitter and google. we'll tell you how as the second
hour of "squawk box" begins right now. welcome back to "squawk box" here on cnbc first in business worldwide. i'm joe kernan along with michelle caruso cabrera. also scott wapner who will soon be replaced by the latest version of max headroom and myself. stocks are surging after regulators cracked down on short selling. one of the rules that would prevent borrowing and paying shares on the same day is what the government instituted trying to prevent a collapse of the country's markets which have lost nearly 30% since june. the news helped spark a rally today. a nice move up almost 4%. in greece the stock market is open for a second straight day after its five-week closure.
you would have to say that that -- i'd even say the two-day response probably -- >> it's only 18% in two days right? >> that's not compared to -- think if they drag ma tiesed. it would have been down 99. u.s. futures right now are a little troubling after the last two or three weeks and the action we've seen because yesterday it kind of got out of hand but did manage to pair losses down 90 or so. it looked like it could have gone down 150. now today down another 32. we'll see how it progresses throughout the session. toyota reporting a record fiscal first quarter profit for the third straight year. the $5.2 billion profit came despite weak auto sales. reuters reported that german chemicals group basf reporting a
takeover. mon santo has been unable to convince sen jen ta into talks. they will only submit a bid if forced. instagram taking a step towards becoming a major mobile advertiser. the social network just switched on its ad interface. that means they can plan ads without connecting a sales rep. ad revenue could pass google and twitter's revenue by 2017. these new poll results that we've been talking about all morning and you can see in the newspaper, in the journal, with nbc and the "wall street journal" show a pessimistic elect rat. john harwood is here. i remember when i got the embargoed piece yesterday. i opened it and there were like
40 pages and i was like never mind, i'll wait for you. but then i worry you might not show me the stuff i'd really like to see. >> 40 pages, joe, and they're all ugly. >> you know what john? i'm blaming social media. i just decided i'm blaming social media. we're all sitting around reading this bad stuff. no one just sits alone and thinks about how great life is anymore. everybody is doing -- oh, no another dead lion. we're constantly seeing this negative stuff. i blame social media. >> it could be twitter. it could be facebook. it could be instagram. who knows. >> or tinder. >> look the american people are in a bad mood about the economy. they're in a bad mood about the political system, washington. when you ask is the country headed in the right direction, better than two to one, they say, no we're headed off on the wrong track, and that's been true for years.
ever since we got out of the after math of 9/11 when people's optimism was void we've been in a rut. it's affecting president obama. look at his approval rating. he's under water again. he had been slightly above water before. 45% approve, 50% disapprove. when you look at the potential candidates to replace obama, both parties don't like them. unfavorable views. when you say hillary clinton, 37-48, unfavorable rating for her. jeb bush the other famous name in the race 26-40. then donald trump who's getting all the attention, leading the republican polls, but the big picture, 26 favorable, 56 unfavorable, net points under water. donald trump would have a very difficult time getting elected and the american public is edging toward a situation where already a year before we've got nominees and a year before we
frame up the general election they're looking at this as a choice between the lesser of two evils, joe. >> people john when you ask them about their feelings about the current economy as it is and also the prospects for it getting any better it doesn't match up with 5.3% unemployment for some reason. >> only 25% of the american people -- >> nor stock market. >> you're right. only 25% of the american people think the economy is going to get better in the next 12 months. that's down a bit from optimism early in the year. in march it was 29. so you're just seeing the summer doldrums if you like, but they're not liking the choices. they're not liking their circumstances right now. >> i wonder -- and this begs the question. maybe i'm wrong, but i still think 3.5% gdp growth solves a
lot of problems but i'm wondering, maybe we're just at a point -- >> i think you're right. >> i was just kidding about social media but maybe we are at a point where it's just impossible to find any type of satisfaction or happiness. i don't know but 3.5% -- suddenly people are able to -- wages start going up and our entitlements and the big looming future with all the baby boomers getting older, a lot of those things become much less there's threatening. >> if you look long term at median wages for american families, they haven't gone up for a very long time. we've been flat and i think that underlies a lot of this frustration that people feel. some people say the electorate is angry and some parts of it are. peter hart our polster on our
conference call yesterday said i'm not sure it's anger. i think it's fear. people are scared about their economic futures. >> but then you look at just the average life of an american right now compared to human history and in terms of healthcare and living longer and food shelter, vacations iphones, we're not that bad off right now. what scares me is that when something bad comes along we look back and say, wow, we didn't know how good we had it. when we were all fixated on chandra levy and then we had 9/11 and said i can't believe we were fixated on that. it's all we were talking about. let's bring in ben white, politico's chief economic correspondent. when i said 70% was on the wrong track, you said -- >> it's only 65.
obviously these are terrible numbers. people are quite unhappy and everything in this poll explains all we need to know about why donald trump is doing as well as he is, why there's talk about a joe biden presidential campaign people are disappointed. >> bernie. >> bernie sanders. anybody who is speaking to this sense of fear of dissatisfaction with the economy. for trump it's i can make america great again. the reason he connects with people is that people don't feel like the u.s. is moving forward in a positive way, the economic is not getting better. i don't think trump ultimately is the recipient of that sort of vote that protest vote. he's not going to win the nomination, but it puts a lot of pressure on the other republican candidates, jeb bush in particular, to come up with a clear vision for the economy. >> pressure or opportunity for the pack. >> it's both. >> if that many people are dissatisfied, you just have to come with your best message of
why you think you can do better for the economy and maybe it doesn't take much. >> why do you believe that america is great? because for several years now leadership in the country doesn't seem to suggest that america is great. >> 3.5% economic growth solves a lot of problems makes people feel better. that's why jeb bush says i'm going to bring you 4% economic growth. he's going to use that in the debate, he's going to talk about that. it's bold to set a target that's double where we are now, but he wants people to be optimistic. >> you see arthur brooks let's be optimistic. i feel dispoen dent because i'm now starting to question whether the -- i'm old enough to remember the late '70s and the malaise and i remember our hostages were there for so long and we try to rescue them and the helicopters crash and we got 18%, but then i remember what happened in the '80s and the '90s. it was like night and day but
now i'm questioning whether we can do it again. >> joe, i wanted to ask you about a point that ben just raised. jeb bush has said 4% growth. you've got a lot of economists especially democratic economists, say give me a break, that's not achievable. what do you think about that? >> i disagree with that. i've seen why they say -- the guys you're talking about, with their policies it is impossible. with private sector, pro growth policies i think it is possible. but, then again i wonder with technology and with a service economy and no manufacturing and globalization and chief wages everywhere else and things moving off shore, then i question myself. that's what i was just saying john. i would like to believe in american optimism and that we can still do it but we have self-doubt right now which is why it's 65%. >> michelle who do you think is the most pro growth republican
in this field? >> i think all of them compared to what we have right now. >> no but within the republican field. >> i think jeb bush speaks most clearly and with conviction about -- >> christie. >> yeah, christie does as well. i'm trying to think of the most electable at this point. >> you might not even hear from christie. >> i know. >> john, when the head of the dnc really doesn't think there is much difference between democrats and socialists that's a problem. >> did you see that exchange with chris matthews? >> she doesn't have any idea. >> did she not know or was she embarrassed by the question? on the republican side there have been many people who have been willing to disavow donald trump but on the left has anybody said it's really embarrassing we have a socialist running for office? they don't want to admit it but it's horrific. >> it moves them towards his --
>> john what do you think of the biden talk -- biden running for president? obviously hillary's negatives are very high in this poll. 50%. i think he wants to do it. what are you hearing? >> i think it's gotten somewhat overblown. i do not expect joe biden to run. i think that his aides are doing due diligence. they're trying to check the guidelines and preserve his options in case he makes that decision in december. i don't think that they expect and i don't expect that decision to be affirmative. >> just because he's too late? i understand in meetings -- >> he's run twice. >> it would be tough to enter at this point against the money and the connected hillary clinton. >> if you're the vice-president of the united states and are very well known, you can get in later than other people but it is late. secondly joe biden has run twice for president and hasn't been very successful.
he also has just gone through a wrenching loss within his family. he's got kids who don't have their father. he's very close to family. i would expect him to take a very large roll as the patriarch of the family. i think he's got a lot of other claims on his energy heart, attention, that make it unlikely that he's going to jump in. >> i think it would take a much bigger meltdown by hillary clinton. he's going to put himself in a position where if that happens, if the numbers get worse, if there's more e-mail revelations, benghazi revelations, he would be there but i agree with john that it's very unlikely. >> who gets left off the stage this week? >> we're not going to see rick perry in the primetime debate which is somewhat of a surprise john kasich gets in. perry gets out. >> carli fiorina.
>> casic speaks to issues people don't other talk about, drug abuse, prison reform. >> that's one of his issues but when you look at who elected him. >> ohio is always right. >> he can talk about his experience at lehman brothers. >> hillary's got a lot of banks. >> so does jeb. >> john it is in large part because of social media. >> of course. it's my twitter feed largely that's bringing america down. >> social media and cable news. >> i think it's mostly because of ben white's twitter feed. >> exactly. i think we throw cable news in. >> i'm all positivity. i believe in america. business cable news is what's right with america. follow me on twitter. coming up, america's largest car retailer out with sales numbers. mike jackson has the data next. then greek stocks falling, china rebounding overnight.
we're going to talk to sha ree could you march about what it means ahead of stocks. plus a sneak peek at the new series west texas series club. we'll hear what to expect from tonight's premiere. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver?
auto sales yesterday and economists see it as confirming their forecast for better growth in the third quarter. >> we've heard that better growth around the corner. auto sales help set the tone for the quarter. they're the first data point for the cnbc wrap it update. the strong car sales confirming forecasts for better growth in the third quarter. here are the numbers. here's what barkley says. we view vehicle sales continued outperformance as sending a strong signal about the underlying health of the consumers. here are the numbers. the second quarter running at 2.7. four-tenths above where it was reported last week because of strong construction spending on monday. the current quarter, economists see growth at 2.9%. morgan stanley raised their outlook by a tenth though morgan surprisingly low for the quarter. here are the individual estimates from some of our forecasters.
action economy 3%. tokyo mitts buschy 2.9. morgan stanley, 2.1%. we've knocked on this door before only to be disappointed. some say the strong sales can't be sustained because we've replaced a lot of the older cars in the national fleet. these numbers are going to be welcome by the fed, at least right now. they need to see at least 2.5% growth to hit the forecast of 1.9 for the full year. we're going to talk to mike jackson.jack sn jackson jackson. >> you've seen socialism up close. >> i keep trying to tell joe that nothing turned me into more of a capitalist than seeing how well socialists succeeded in the union. everybody got the same bland nothing. and the greatest of humanity was squashed and quashed over decades. >> thanks. >> thank you. >> we saw it in the
architecture, the liveliness of the people. >> starving. >> i'm sure you have debbie's e-mail. send her what you just said in case she needs it again. and the third time you go duh, duh, duh, duh, when asked that question. thanks. >> they're telling me to be quiet. >> we have to go. >> every time i say thank you, you keep talking. >> i didn't say nothing. auto nation america's largest automotive retailer is releasing sales figures for the month of july. joining us first on cnbc with the results, mike jackson, chairman and ceo of auto nation. it's good to see you. >> scott, good morning. how are you? we also had an outstanding july with retailing almost 30,000 new vehicles. that's plus 9%. and the industry's clearly on its way to 17 million as we forecasted. the industry sales for the
fourth time in the last five months broke 17 million units. the stampede the trucks continues with gasoline at $2.50 across america. imagine in july truck sales were up 13% and car sales are down 3% and the sale of electric vehicles and hybrids are absolutely plummeting. the neeson leaf is down 60%. the prius is down 15%. overalthoughl overall though it's very good for the industry. we had a depression in car sales for three years and we just hit a new record for average age on the road in america, 11.5. so even with somewhat higher interest rates the industry is going to be running around 16 million for the next several years. >> you don't buy the concern that the pace of sales cannot be
sustained? >> the rate of growth cannot be sustained. the rate of growth has gone -- go back five years ago, it was plus 15%, then plus 10%, plus 8%. this year it will be plus 4%. next year it will be less than that. so the rate of growth is definitely slowing. that's to be expected. but we're at a trend right now of somewhere high 16 17 million, and the average age is 11.5 still. >> i wonder how as the price of oil has come down and then the price of gasoline has clearly followed how nimble you've had to be in changing up the mix of kinds of vehicles that you offer and whether you continue to have to do that for, as you said earlier, an suv and truck crazy nation right now. >> it's definitely a problem for the industry because the development cycles are three to
five years and the install capacity is five to eight years. the industry has invested countless billions in fuel efficiency both because of where everyone thought the price of gas would be and because of government mandates on fuel efficiency. all of a sudden the market in a relatively short period of time has careened in the other direction. we have an overcapacity in mid size sedans and the truck plants are running absolutely flat out. it's a problem for the industry and looking four or five years down the road with the fuel efficiency mandates we have to meet, there's no chance of getting there with gasoline at $2.50 a gallon. >> you think if the fed hikes interest rates in september it's going to have any meaningful impact whatsoever on your customer base? >> very little. let's face it these interest
rates have been an absolute free lunch for six, seven years and the free lunch can't last forever. i actually think to begin to increase rates gradually would be a clearer signal to everyone that the absolute crises is over. we may not be happy with where the u.s. economy is with gdp growth at 2%. it needs to be greater for america to feel like it's going in the right direction, but our customers and our industry -- we don't need zero percent interest rates to function as an industry. we'll handle the gradual interest rates that are coming. >> mike, it's good to see you as always. >> thank you. >> mike jackson, the ceo of auto nation. a good friend of squawk. >> coming up in squawk booze news we'll tell you why a disteller is sending liquor to the next frontier.
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box." one economic report on today's calendar, the government out with june factory orders. at 10:00 eastern, economists are looking for a 1.7% increase. disney is seeing reported profits of share on revenue of $13.2 billion. one of the first employees of bernie madoff securities will be the last to be sentenced today in the madoff case. irwin lip kin is the last of 15 who either pleaded guilty or were convicted in the scheme. >> sun tori is sending a 21-year-old single malt and a new unaged whiskey to the international space station later this month. sun tori wants to know how the zero gravity environment will affect the taste. the sample will stay on the
space station for at least a year and will be sent to labs for a taste test. there's no plans to make the whiskey available for purchase. when do you spell w-h-i-s-k-y? >> depends on whether it's from scotland. >> ireland has an e. >> scotland doesn't. >> i think it's y. >> do you like japanese whiskey? >> i don't like whiskey. >> really? one of my favorites after gin. >> japanese whiskey? >> i generally drink only scottish. >> do you drink it on the rocks? >> i like it straight. >> i like bourbon. >> if you like bourbon, then you like whiskey. >> paul mccartney says he likes a little white wine or a nice margarita. >> with his arugula? quinoa? >> exactly. his kale chips.
coming up a rebound overnight in the shanghai composite, the index gaining 3.7%. we'll talk about the china effect on the u.s. markets up next. as we head to break let's look at u.s. equity futures. looks like it's going to be a down open. the dow would open lower by 44 the s&p by nearly six and the s&p by nearly 14. i by nearly 14. n by nearly 14. ind by nearly 14. e by nearly 14. x by nearly 14. sometimes, at last doesn't happen at first. ♪ ♪ your dad just kissed my mom. ♪ turning two worlds into one takes love. ♪ helping protect that world takes state farm.
welcome back to "squawk box" here on cnbc. we're watching global stocks this morning. the greek selloff rattling european markets. it's lower but so is france italy, u.k. as well. meanwhile, the shanghai composite actually surged on news that chinese authorities have stepped up their sales of short sellers. joining us is sri-kumar. we had this conversation during the break. am i characterizing what we said correctly? >> i think you're categorizing it directly. i think stocks are in for a downward move. the question is you can keep postponing it with a lot of
quantitative easing liquidity being provided zero interest rates in china and europe. eventually you cannot defy gravity. it has to come down. bonding where they're going to go down much further. i continue to remain bullish. >> how low? >> the 30 or the 10? >> the longer term target has been 150 for the ten-year? >> 150? >> yes. short term i'm looking for it to go below 2%. i've been saying that from the beginning of last year when we were at 3% and everybody expected it to go to 350 and i was at 2 and we actually went to 185. >> joe has been had are longer but i've been here 17 years and the very first week i remember a piece of advice whatever you do do not buy the long end of the curve. and what is the one thing you should have done the whole time
and you're still saying. >> interest rates are not going up because there's no inflation. growth is slowing and you have all of these uncertainties in the world. the combination of where do you get the higher bond yield from? i don't see the fundamentals supporting it. even if the fed were to increase interest rates which i doubt it will happen in september or december, the yield curve is going to flatten. >> it's not a commentary on the strength of the u.s. economy? it's pretty good here. can we believe 5.3% unemployment and it's the global environment that's holding us at 1.5? 1.5 ten-year and 5.3% unemployment don't make sense. >> you're absolutely right. the u.s. economic growth is not bad when you compare it with what china is going through and what the euro zone has experienced but you don't have
sustainable fast growth and i think that's going to continue. on the unemployment front, i don't think the 5.3% is giving you a good picture, and many people -- you are looking at the wrong measure of unemployment and that's why you think things are better than they are. >> this would suggest to me that you go back and you buy dividend payers et cetera? that would be my reaction here. why would i want 2% or less on a ten-year when i can get a much better yield on one-third of the s&p 500 yielding more than that and hopefully at some point you may be get some underlying asset appreciation. >> absolutely. i'm an asset allocator. go in for cash rather than long-term appreciation. that day will come later, but it's not today. >> you're telling me if you think that the ten-year is going to go down to a yield of 150,
what does that mean for where the stock market is going to go? >> it doesn't mean anything good. it just means that the stock market is -- >> how low is the stock market going to go? >> you've gone up a lot thanks to all the liquidity, so if the fed were to ever increase interest rates, 20% plus in terms of the downside? >> a hike in september, a quarter point move is going to cause a 20% decline in stocks? >> the quarter point move alone doesn't do it. what causes it is the precursor to what might happen. we all remember -- some of us anyway -- february 1994 when there was an unexpected increase in interest rates, february 1993 that it happened. when that took place, the market was unaware and that was the start of a string of rate hikes. no matter what the fed is going to tell you, they are going to do it gradually, they're not going to be abrupt in increasing, the increase has
taken place. scott, this would be if it happens, the first rate hike since june of 2006. >> nine years, we played the music. >> nobody there knows what the fallout is going to be. >> 1.5% ten-year isn't necessarily bad for stocks. >> it usually helps the stock market. it drives people to go to higher yields in the stock market. >> he's saying it's going to go there because it's a reflection of all the problems in the world. >> then again, there's no alternatives and therefore -- >> you have to see whether it's the cause or the effect. if it's the effect then it doesn't bode so well for equity. >> i need a drink after that. >> gin you said. >> yeah i said i need a drink after that. >> gin, i know i heard you. you disparaged vodka drinkers in the process. >> what did you call men who
drink martinis? >> anyone who orders it is a wimp. i don't drink this early in the morning. >> you put gin or vodka in a bottle? >> i do not have a bottle. the latest offering in the cnbc line up, where entrepreneurs go deep in the heart of texas. plus we're going to talk to rooster mcconaughey and butch gilliam about tonight's premiere.
first thing i can think of is the guy might be smarter than us. >> you drink beer? >> sure. >> get on over here. sit down. there's a stool there. >> you want a accusy? >> sure. >> there you go bud. >> if you want to get to know a man and look into his soul have a beer with him. >> how much of your money is in this thing so far? >> everything that i've saved over my 27 years. so approximately $120,000 of my own money.
>> it's very important to us for these entrepreneurs to have some money of their own invested. >> first ever startup? >> yes. >> i started a bunch of them that went -- hit the deck. >> went south. >> are you getting scared? >> i'm excited more than scared really. i really believe in what we've built. my grandfather was very successful in business. he is really a lot of my motivation for doing this. >> who is your grand dad? >> cheers. my grandfather has really shown me not only how to be a good businessman but a good person. >> cnbc is taking texas primetime in "west texas investors" club, two self-made millionaires are putting their fortunes to work by investing in promising entrepreneurs but only on their turf and their terms. we're joined by mike rooster mcconaughey and wayne butch gilliam. good to see you.
>> good morning. >> i don't even want to say -- and i'm from cincinnati and i'm going to start talking like you because you fall back into it very quickly. i'm not even going to mention "shark tank." it's a similar thing but you were doing it before "shark tank" became a big thing. is that correct, butch? >> it's sort of like a hillbilly "shark tank." >> rooster your long-term motto, you don't invest in ideas, you invest in people. >> this is a condensed version of our life. this is what we've been doing for a long time. >> you guys have known each other for decades and you made a bunch of money and you are entrepreneurs in the oil business. >> right. >> how long ago was that and how big did your company get? millionaires, right? >> his got bigger than mine. >> a cool story about rooster and i, we've known each other around 40 years and we've been
competitors the entire time. >> still are. >> we still are. our primary business we compete with each other head to heedad. we've become really close friends. >> why the hell don't you hate each other then? >> i know. that's the norm. >> were you wildcatters? where did you make the money in oil? >> he patented the thread but before that he worked in the shop. i started from the bottom working in the pipe yards. both of us were in the pipe business production of pipe and stuff like that. that's mainly where it started and then we started investing in other things. we made so many mistakes that we were running out of bad things to do. >> people are going to come down and try and -- you're going to invest in different ideas people have. is it going to be like blue collar ideas? if someone from san francisco
comes with a social media idea to want money, are you guys going to invest in that? is that something you would understand? >> i mean for instance this first episode, you'll see it's all about the person because we don't have a clue about what he brought us to look at. i mean i'm telling you we don't have -- we're not in our comfort zone on some of this stuff. >> once again, it's the people. >> it's the people. we're going to show -- we want to show people that you can invest in a person and it's not -- and still do good. >> is there a lesson from your life that you can afford to make a ton of money by doing this? >> every deal i've ever done has been with somebody good it hasn't been with somebody that was bad. we've invested in really good deals but there was an untrustworthy person and the deal went south. >> what was the first deal you guys ever did together? >> pipe deals, lots of pipe. we partner up on buying volume pipe, lots of pipe. >> he was getting all the
business so i had to partner with him. >> how do we find you? how did cnbc find you guys? >> jason henry knew us from previous stuff we had done a documentary we had done on this bull deal about wild bulls. he got with char la and they came down and talked to us and we talked about our life and they were like man, we would like to do something. >> if somebody comes to see you and they have an idea what's the first question you ask them? >> we like to find out a little bit about the person immediately find out about their character. we believe that with the wrong person, any business the best business in the world, can be ran straight into the ground with the wrong person. >> i hear this from a lot of bankers who say, gosh they keep trying to regulate and regulate and regulate and banking needs to be based on trust and a code
of ethics. >> it's like people's farms. they're regulated too much and they're shutting people down too early. you see how everything dipped, especially in our industry it dipped. a lot of times they pull the trigger too fast. >> a lot of pain in your industry now. >> we had a lot more money before we started the show. >> i'm afraid if i asked you how much money you made you might hurt me. when people come in and want an investment -- you see these guys on "shark tank" and cuban has $100 million so he can screw around. is that a large amount? >> it's a large amount. we're certainly not mark cuban, no. >> if you had it or if you owe it. >> is it all your money that you're going to be doing on this show? >> i'm going to have a lot more fun investing than mark cuban because it's more of a risk. >> to him it's play money. >> that's the fun of it.
the fact that if we do lose it we don't want to lose but the fact that we are -- we're trying to go on with the common people. >> are you going to get as involved as marcus lemonis? >> he works hard at it. we don't want to rebuild buildings and stuff like that. dang. >> you came in and you've been watching "squawk box"? >> forever i've been watching. i'm telling you, he did it. you don't age that much. it's like what's that guy, dick clark. you're the dick clark, really and truly. you're going to be doing the ball new year's eve. >> if you have something done, five years later it looks bad so i haven't had anything done. i'm getting to the point where i might have something done. i'm might grow a beard. >> look at this chicken neck i
got. i take viagra for it sometimes. >> i do too. for other things. >> for my neck, nothing else. >> i've already gotten this out of the way. you have not recently or in the past played the bongo drums naked. >> no. >> you are matthew mcconaughey's older brother. >> yeah. >> i don't know why i thought that because we get all these trophy wooifs back here. i said are you a brother from another mother but no it's a 16-year difference but your dad was just like a star just getting it done basically. >> yeah. >> 16 years different. >> 16 years. >> you have kids with a large spread as well right? >> i'm like 40 9 and 6. >> you have a kid the same age as your brother. >> he had to have somebody to play with. everybody wants a little brother. i said i'll get you one. >> god, i love this show. i love you guys.
>> my grandkids all call my pa. the reason is whenever i walk up to them i go did that guy call you daddy? >> is that a light beer? what is that? >> it's a beer. >> it's never too early. >> it's 7:52. >> come on we're having fun. it's not like i'm working. i knew you weren't going to ask me no tough questions or nothing. >> scott it's noon somewhere. >> street had to think. we don't have to think. this is the global marketing guy. >> do you invest in the stock market? >> you bet. not doing too good right now. i trusted those oil stocks. >> exxon? >> exxon, con aco and chevron. i was having fun hitting those $6 pops and then i had to promote the show and didn't
check on stuff and look what happened. now gil, that bearded guy, that guy, he's investing with biotechs and stuff like that. he does pretty good. of course, he went from -- >> we're going to make you more famous than matthew. >> oh, man, we don't have to do that. good god. >> are you competitive? >> heck no. this ain't no race. man, all i got to do is be me. this ain't that tough. >> i drive a lincoln now because of him. thank you. >> thank y'all. >> the show is going to be great. >> premiere of cnbc's "west texas investors" club is tonight 10:00 p.m. eastern and pacific. coming up big movers this morning. we have your list of stocks to watch. that's coming up next.
one stock we're watching this morning, coach beat estimates by two cents with adjusted quarterly profit of 31 cents per share. the beat came despite an eighth straight quarter of falling sales for the company's handbags and accessories. coming up, twitter trading at the lowest level since the ipo as the company struggles to get back on track. there's speculation that a price below 30 per share will bring out acquirers. we're going to tackle twitter's future next. in fact, the number of mris has increased by ten percent a year.
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that whether times are good or bad, innovators with great ideas will continue to drive the world forward. as log as they have someone to believe in them. for more than two centuries we've helped progress makers turn their ideas into reality. and the next great idea could be yours. shares of twitter hitting their lowest point since the ipo. and apple breaking below its 200-day moving average. is this a sign of trouble in tech land or just cracks in the
bull run for two high flyers. we'll go inside the sector straight ahead. the ceo of paychecks breaks out the latest read on small business and the economy. plus we'll look how south carolina governor nikki haley is trying to make her state the hub for american manufacturing. >> a documentary to show the quest for number five. her partner in the project, dick's sporting goods as the countdown to the final hour of "squawk box" begins right now. welcome back to "squawk box" here on cnbc first in business worldwide. we're less than 90 minutes away from the opening bell on wall street. futures are about where they were a little better down 35 or so on the dow earlier. now indicated down 24.
4 on the s&p. the nasdaq indicated down 9 points. checking markets in europe at this hour which are now negative even though we saw a nice move in shanghai. it's like a different thing we worry about every day. shanghai doing nicely today but that's not good enough. you can see greece is down about 2.4%. did it close down less than 20 yesterday? >> yes. >> it's opened down 20 and then i saw somewhere it said i was down 22. it closed down 16 didn't it? >> that's a good question. i thought it closed down 16. >> it closed down 16 but a lot of bank stocks traded down. >> we want to make sure everybody saw at least twice on this report the top and the bottom. >> exactly. but that's trading now and so it's 2.4%. that's it. 18 or whatever plus 2 so that's it. i would say that's a small victory. >> remember the locals can't be active in the market yet. here are the other stories
we're talking about. china stepping up its restrictions on short selling. officials are trying to stem a 30% collapse in stock prices since june. traders are no longer allowed to take a short position and cover it the same day. >> pimco focusing on the value of certain mortgage backed securities in 2012. britain netted $3.3 billion which leaves the government with a 73% stake in the bank that it bailed out during the 2008 financial crises. >> the market is kicking off with losses. the slump in oil taking a big bite out of stocks and yield is hitting their lowest level in two months on weaker than expected data. what is really driving the stock
market? >> i think, joe, you made the point a second ago. it kind of depends on the day. yesterday u.s. open down i'd say the china pmi data the business sentiment data that were poor that had an influence on oil and u.s. stocks but particularly energy stocks. today it's interesting to me that europe is down on greece because i thought we decided greece doesn't matter. yesterday we had the european business confident surveys that actually were better than expected. they rose in the month of july despite the turmoil in greece that month. to me any dip in europe right now is a good buying opportunity. >> more so than a dip here? >> i still am constructive on u.s. stocks. we're still slightly overweight. we've reduced that this year to help fund japan and europe but i still think the u.s. there's no perfect story right now. u.s. is going to see tightening at some point this year probably. valuations have gotten a bit history but you do have better growth. in japan you have supportive
central banks but you don't have as strong of growth and you have some other hair on it. japan is going to be -- and europe both are a little more exposed to china. >> speaking of china, do you think we're going to get mr. central bank support? >> the reserve requirement rate is probably going to get cut again. i think that's pretty much prized in. it's just a question of timing. i think we could see more fiscal stimulus. china is between a rock and a hard place. they desperately want to get more respect on the global stage, and to do that they're trying to get their currency in this imf currency basket special drawing rights. they have to show their markets are open and freely traded. how do you do that? either you support your stock market to prevent growth from slowing down too quickly and you risk getting in this imf basket or do what the imf wants you but you could have a slower economy which hurts the global economy. i think they will stimulate when push comes to shove. >> that would seem to be a
bullish sign then for investors not only globally but here too. if they do stimulate there, maybe we have to stop worrying on an almost day to day if not weekly basis about a more dramatic slowdown in china and how that's going to impact earnings here down the road. >> i agree with that. i think over the next 12 18 months china has the tools and will take the steps to manage its slowdown. whether it's 7% 6% they're going to manage it. if i look over the next five years, i think china is a complete wild card. how do they manage the slowdown, how do they transition to a mature developed economy with that many people that big of an economy, heterogeneous of a company and that type of government. i don't know if they can pull it off. >> what's the message of a ten-year note yield to 2016? >> right now it's getting exacerbated by lower oil prices
and we did see that employment cost index report last week that it was extremely unusually low, but i do think we're seeing signs in the u.s. that wages are going to rise. oil we know goes up and down. over the next 12 months i think it's more likely to go up maybe not quickly, but it's going to go up. i do think we're going to see some inflation. we are going to see the ten-year high over the next 12 months. but in the very short term who knows. if oil goes down more the ten-year could go down with it just on inflation. >> we turn our attention to technology. look at the red hot mess that is twitter right now. stock losing more than half its value since the start of 2014. compare that to the broader nasdaq which is up over 20%. is twitter just the tip of the overvalued iceberg in the tech sector. let's bring in mikethe founder and ceo of destination wealth management and a cnbc
contributor. what's the problem with twitter, a product that's greatly loved by the people who use it and yet the stock can't move. >> the problem is not as many people are using it as it might appear. twitter has great name recognition, but in terms of its ability to really become a meaningful part of people's lives beyond say, journalists and politicians and celebrities, i think twitter is really a company that's looking for a purpose at this point. they said as much during the conference call that they really are having a crises in really identifying what they are and who they are and how they're going to be useful in people's lives. so they are in what's called -- in scary terms in the technology world, in a turnaround mode at this point. even though revenue was fairly strong in this last earnings report, i think twitter really is facing a decision of defining who they are. that's not only a marketing
issue but it's also a usability issue. >> you're running the company and that means practically what do you do exactly? >> i think if you're running the company you have to figure out exactly what is your real user base. there are suggestions out there and i tend to agree with these suggestions that twitter can be a powerful force, a profitable company for a more limited group of users. i don't think it's the same thing as facebook. i don't think that everyone is going to be on twitter. maybe it's a business to business sort of model. but i just don't see that on an individual basis you're going to see as much usage as twitter was perhaps hoping for. the addressful market in my view for their services is just not as great as they had hoped. >> i see in the notes that you think it's just too hard to use. would you change it? >> yes, obviously. you need to make it an easier product to use and you need to make it again a more meaningful
product. it needs to be something that isn't so much finding out what kim kardashian had for lunch. you had to find out exactly what you're trying to do in terms of a company and i think really from a business standpoint i think it has tremendous value. remember also that twitter is a company that while it has revenues like other social media stocks or like many social media stocks, they still have massive losses so they still have to figure out profitability. >> always a big issue. your thoughts on twitter or the tech sector in general. we keep talking about a bubble in technology and twitter is worth $20 billion, let's not kid anybody, but not participating like we've seen other tech stocks. >> we continue to be overweight tech in our portfolios when it comes to equity. when you think about these
valuations of publicly traded tech sector stocks they've risen but they're below median levels and below a lot of other sectors. so there are some -- i wouldn't say great buys there, but there are valuations that are compelling. it's interesting, we do a lot of fundamental analysis. we also do a lot of quantitative analysis when we're picking stocks. our quantity filters which are screening for attributes anybody would like in a portfolio, like tech better than anything else right now. >> appthere's a broad brush that people apply to the word technology. you have companies like microsoft and apple but then you have companies like yelp. so i think that tech has to be selective. some areas of tech are hugely valued at this point. >> sure. it's definitely not mono lengthic. let's go back to the question we
posed in the beginning of the show, apple or exxon? >> our portfolios own apple and we feel good about that company so we're happy to own it. we've been underweight energy equities for the last year and a half and we continue to be. at some point we think there's going to be a great opportunity there. i'm not a stock picker. i'm macro girl. but i do try to follow these things. exxon never got that cheap, even with the oil selloff. if you're an energy focused or based investor what are you going to own? the companies with least leverage. >> that you know will survive. >> exactly. so people didn't exit some of the big, big oil majors the way they did the smaller leveraged guys. so those companies never got that cheap considering the move in oil that we've seen. >> exxon is really in our view more of a fixed income substitute. it's really a dividend play. apple pays a dividend but that's
not why you buy apple. you buy it for the growth and revenue and expanding presence in china. i think the reason why exxon never really got that cheap is there weren't any bonds people could buy that had any significant yield. if you're buying exxon you're big it for the yield. >> would you buy exxon or apple? >> apple. >> two votes for apple. >> michael, good to see you, rebecca, good to have you on. >> you get two exxons for the price of one apple. >> i should pose the question differently? >> yes. coming up president obama's announcement of a new rule for reducing greenhouse gas emissions already coming under fire from coal heavy states. later a look at what parts of the country are seeing a pick-up in small business hiring. the ceo of paychecks is here with the latest data.
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president obama speaking at the white house yesterday in a press conference to formally announce the final clean power plan on carbon standards for power plants. >> i'm convinced that no challenge poses a greater threat to our future and future generations than a changing climate. >> quite a statement. in response patrick morrissey, attorney general for the state of west virginia announcing that once the epa finalizes this regulation, west virginia will go to court and challenge it, calling the proposal flatly illegal. he joins us now. attorney general morrissey, you got some backing from the "wall street journal's" lead editorial today, stridently talking about this as a complete abuse of power, saying without a vote in congress or even much public
debate, mr. obama is using his last 18 months to dictate u.s. energy choices for the next 20 or 30 years. pretty amazing. >> yeah. it's truly unbelievable. i think it's important for people to see just how unprecedented this proposal is. first, they didn't go through congress the way any major initiative typically does. second, what they're doing here is they're taking the clean air act which is supposed to regulate in the environmental area and they're radically transforming it. they're trying to help manage state's energy portfolios. that's one of the major reasons why i think this ultimately will fall in the courts. this administration knows that and they roll these proposals out knowing that the court cases may take some time to work their way through, but meanwhile they think they can claim a victory. we're hopeful we can change that because their legal theories are flimsy and while they've made a number of changes from the proposed rule to the final rule
i still think we have the better of the legal arguments. >> they did get the 2007 decision which was a little bit surprising to some extent classifying carbon dioxide, the gas that is necessary for all plant life and photosynthesis regulating that as a pollute ent was kind of a leap of faith but they got that and that gives them the power to do a lot are things, doesn't it? >> i know that everyone sites the supreme court case from 2007 which talks generically about carbon dioxide, but you still have to actually apply the clean air act. the way they did this here it really is illegal. you have to have specific authority to act the way they do. so if folks cite the supreme court case you have to look at the fact that the clean air act does envision the regulation of coal fired power plants but it bars the double regulation of coal fire power plants. the administration already
regulated to national standards, but now they're fryingtrying to get a second bite at the apple on state standards. >> attorney general, we know that -- remember with the tobacco litigation a while ago there might be a state that had big presence with reynolds or something and back then it would be purely about money and protecting an industry that was specific to that state. for west virginia obviously a lot of your constituents, their livelihood is based on coal. is it anything more that you're doing here or just trying to protect an in-state livelihood or industry for west virginia? >> well, we're certainly trying to protect jobs in west virginia there's no doubt about that. but i think there's a much greater principle here. you really have an attempt to radekically transform an american energy policy on the basis of some of the flimsyest legal
arguments. what they're doing here is really important for all states not simply coal-producing states. if you can convert the environmental protection agency which is an environmental regulator into a central energy planning authority, that spells bad news for the next few decades. it's really a massive and radical power grab and i think it's important for people to focus on that whether you're in a coal state or not. the other point is that even if you're not in a coal state, it seems to me that the math is clear. if you move more coal fired power plants off line you have to build new coal power plants. ultimately it's going to cost american consumers a lot of money. >> we have an older sound bite. it's the president talking about his cap and trade plan which obviously this is not cap and trade. i'm going to play it. it's long it's 31 seconds, but just for an idea of the mind-set that goes into some of these
decisions. let's take a quick look. >> sure. >> under my plan of a cap and trade system electricity rates would necessarily sky rocket. regardless of what i say about whether coal is good or bad, because i'm capping greenhouse gases, coal powered plants natural gas, you name it whatever the plants were whatever the industry was, they would have to retrofit their operations. that will cost money. they will pass that money on to consumers. >> pretty amazing. we just had a poll today that 65% of americans think we're headed in the wrong direction basically because of the economy, but to see the -- you're talking about climate models that are forecasting some dire occurrences 20 30 years from now as the greatest threat and to really sort of pass on
the economic implications of this and you can see he's fully ready to do that a couple years -- i don't think he's changed that much since 2008. the economic concerns are definitely secondary. >> i think he had a real candid moment. look i think he had a very candid moment back in 2008 when he talked about cap and trade, when he talked about bankrupting coal fire power plants. but i think you're on to a really important point. if you're going to move the amount of renewables up to that level, you're going to have to reduce so much coal fire power that has to get born by someone. when the president says that's actually going to save money, we know that the math can't add up because there are significant expenses in building these new power plants. the other critical point is that this is happening at a time when china, india, germany, countries across the globe are building power plant after power plant, coal fire based, and yet we're
unilaterally disarming. i think this represents a bad message for our country and for the world. if you want to impact the environment favorably, come to congress, have a debate compromise. don't allow unelected bureaucrats to get away with this on the basis of what's a legal typo. >> attorney general morrissey, we appreciate your time. thank you. coming up the ceo of paychex are here to talk job growth in america. south carolina governor nicki haley pushing for transportation companies to come to her state and set up shop. her comments straight ahead. "squawk box" will be right back. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. those who have served our nation. have earned the very best service in return. ♪ usaa. we know what it means to serve.
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among some stocks we're watching this morning, regeneron beat estimates by ten cents. revenue also well above forecast. they raised their u.s. sales forecast for its macular degeneration drug i leah to 45 to 55%. alibaba named ex goldman sachs exec as president. >> coming up south carolina wants to be the hub of
manufacturing for the southeast. we hear about governor nikki haley's push to bring jobs to her state. and then small business represents 95% of all employers in the u.s. so it's no wonder why the paychex small business jobs index is a great indicator of the overall economy. paychex ceo marty mucci brings us the story. let's look at u.s. equity futures pointing to a lower open across the board.
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xçó0 welcome back to "squawk box." on cnbc first in business worldwide, here's what's making headlines this morning. a record first quarter profit for toyota despite slightly weaker vehicle sales. toyota was helped by cost cutting measures and a weaker yen. community health spinning off 38 hospitals and its consulting business into a separate publicly traded company that will be called quorum health the second largest hospital
operator. check out shares of sprint in the premarket. they lost one cent per share for its latest quarter, smaller than the 9 cent loss wall street was expecting, did raise 2015 earnings guidance and its churn rate dropped to a record low. the latest data on the health of the jobs market for small business. the paychex ih survey for july showing the economy and the job market are experiencing slow and steady growth. here to take us inside the numbers are paychex ceo marty mucci. thanks for joining us. >> good to be here. >> give us the headlines. >> the headlines is just basically what you said good continued slow steady growth for small businesses. this is our index that's under 58 employees so it makes up 95% of all businesses in the u.s. from a region standpoint 9 out -- most of the regions showed improvement. the central region still the strongest, but the mountain region really picking up the
last three months. i think this is high tech jobs continue to prosper there. dallas remains very strong. in fact, texas is kind of the tale of two cities. dallas they strong for about the tenth straight month and houston dropping with oil -- jobs around the oil industry slowing down. >> i'm surprised about texas. there's enough going on there that can offset the big decline in energy and the production that we've seen? >> yeah it's really around tech. dallas though is the strong city. houston continues to see a drop which is really where most of those small businesses around the oil industry are. >> when i look at the chart that you sent over it still looks like okay it's not bad, but it looks like it's kind of stalling. i mean, could it be stronger at this point when we're talking about an unemployment level nationally that's as low as it is? it looks like it's done nothing in the last two or three years. >> really it peaked out last year around this time and then
it's been kind of up and down but slow steady growth is not a bad thing. it's consistently been over 100 for the index which really measures the change in job growth over our base year 2004. we think it's pretty good news at slow steady growth which seems to mirror the gpn we've been seeing. >> slow and steady job growth much better than the huge declines that we saw in 2009 but considering the level of unemployment at this point, do you expect that to start moving sharply at this point? i would just think it would be better. if unemployment is so low, it should suggest that something is going on that would maybe lead to an even better performance. >> i do think there's a certain amount of caution. you see the small business index, the confidence consumer confidence up and down a little bit, so it's not a real strong showing but it certainly is consistently positive.
you do see some marks like miami starting to pick up where there's some housing construction going on in the southern states. you see dallas the regions in the central. michigan continues to be strong. i think there are some good pockets there and overall good slow but steady job growth improvement. >> marty, thanks for joining us. we appreciate it. marty mucci, ceo of paychex. sticking with the jobs question, south carolina is becoming the new manufacturing hub of the southeastern united states and increasingly it's the choice for car and plane manufacturers and suppliers looking to build new plants. phil lebeau has more on the push for number one. he joins us from north charleston south carolina. i don't think there's a south charleston north carolina is there? >> reporter: i don't think so joe. anybody who's familiar with aviation realizes that this is a critical part of the growth not only for boeing because we're here on the floor of the boeing
plant where they're building dreamliners hinted dreamliners behind me. i look around here and i see six different ones that are in the midst of production. they built three at this plant. what we're seeing in terms of aviation and auto manufacturing in south carolina is atrue boon that has gone on for years. look at the aerospace jobs in south carolina versus other states. there's no comparison at all. there are a few other states that are starting to ramp up their addition of jobs including alabama. but when you're talking about aerospace in south carolina it's not only boeing. this gets most of the attention. but it's all of the suppliers around here. in fact, we caught up with one, uec electronics, a component supplier. they are tripling their backlog over the last year because of the growth in orders here at boeing as well as some of the other suppliers. $1.4 billion in exports in south carolina. aviation industry more than
54,000 workers. beyond that when you look at the auto industry, look at mitch lynn. michelin has three plants here in south carolina. it leads the u.s. in entire exports, at least south carolina leads the u.s. in entire exports. they employ more than 9500 workers. we caught up with the ceo of michelin north america. he said that watching the growth of south carolina over the last several years has been helpful in helping -- >> it's helped to really drive the development of things like education, work force development, the infrastructure. every time a new announcement is made like the recent volvo announcement, that only reinforces the fact that the state is moving forward with manufacturing. >> pete celek talking about volvo making an announcement that it will be adding a plant here in south carolina. we talked with governor nikki haley about volvo's decision to come here and the fact that she didn't look at the volvo
decision as competition with other states. she looked at it as competition with mexico where so many auto makers have been setting up plants over the last five or six years. guys we're going to hear from the governor coming up a little later on this morning on squawk on the street. interesting comments about how she approaches competition when it comes to dealing with the auto makers who are considering south carolina versus mexico for future plants. that's coming up in the 10:00 hour. back to you. >> il thanks. we'll be watching. when we return beach volleyball star carrie walsh jenningsings on a quest to win her four gold medal and she's the subject of a new documentary produced by dick's sporting goods films, focusing on her goal as she tries to balance life, sports and kids. she's our special guest when we return. check out the futures at this hour.
welcome back to "squawk box" on cnbc. we are first in business worldwide. the futures right now suggest a slightly negative opening. dow opened low by 24 points the s&p by 3.5 and the nasdaq by a little more than nine. the 2016 olympic games kick off in rio in one year and one day. three time beach volleyball champion kerri walsh jennings will be going for gold again this time with a new partner on the court and the sidelines. she's teaming up with retailer dick's sporting goods on a
documentary about her journey. kerri walsh jennings is here. you got like three. would it kill you -- could you give us one? you like them don't you? >> of course you're part of it. if you're american you're cheering me on and we won this together. >> she looks familiar doesn't she? >> i've been around for a while. >> it's become one of the most popular sports to watch on tv. >> right. and a lot of pride wells up because you guys really bring it. >> we kick butt. that's the goal. >> you do. when you're watching it's nerve racking because of the structure of the game. now they're serving, oh, they lost the serve, oh, are they going to -- >> being here with you guys is a little more nerve racking. >> this is easy.
michelle immediately said when i said how do you balance it with kids, people don't ask men about how do you balance three kids with a career but then i think about how much training you need to do and being away and everything else. sometimes mommy is a little bit more nurturing. is that a wrong question to ask? >> no, heck no. it's one of my favorite questions that i get asked. i would think it goes without saying that my husband, my partner in life helps me do all this work. my husband picks up the slack so much. i'm as present as possible but when i'm gone someone needs to step up and casey thomas jennings is the best daddy in the world. >> my only point was that if she were a man you probably wouldn't have asked that. did you ask hunter yesterday that question? >> i was just reading! i was reading. >> being on the road and raising his kids. >> i was reading, i was reading. we just heard a guy who came in and said women are much better at governoring and everything else. there's no difference. >> i didn't mean to divert.
>> next time ask the guys so he can talk about his babies. it's important. >> i will next time. so the documentary goes back -- there must be film going back to the very first competition, right? >> absolutely. my goodness i've been playing this sport for so long. my first olympics was in sydney right after i graduated stanford university. three beach olympics and i'm going for a fourth in rio. i have three kids now, i only had two in london. >> graduated from stanford university, multi-gold medal winner. >> one of my favorite accomplishments, truly. >> go ahead. >> have you read about the water in rio? are you worried? >> i read about a lot of stuff in rio, and to tell you the truth, prior to every olympics there's a lot of panic. athens, security and all these things. there's so much buildup and they execute very well.
rio is going to be a different beast. they have a lot of challenges i've never seen before as far as infrastructure and the water conditions but i know they're going to hustle. >> they didn't finish for the world cup, right? they had to move games because they couldn't get the stadiums built. >> the great thing about sport is a lot of things get overlooked because the competition is so great. it's going to be what it is. i'm going to do my job regardless and kick butt for the usa but we'll see. >> could you really do it without misty? >> of course i can. i love misty may trainer with all my heart. >> how much does the partner have to do on beach volleyball --? >> everything. the coolest thing about my sport, i believe, is that i am so individually accountable but it's such a team sport. misty was the ultimate partner. amazing, we obviously had great success. april, my new partner, is a star. she won the silver medal in london which means she's really hungry for that gold. four sounds really good to me. >> did it take a while to get on the same page? >> it does.
it's a rhythm a cadence thing. you can only learn through experience. >> you have no idea. >> sometimes you carry your partner in the sand pit. >> let's get off of this subject. as far as endorsements go sometimes you don't think that maybe it's totally equal. there are so many issues with pay for women. i would think you got three gold medals, it's incredible popular, beach volleyball in the olympics. sponsors ought to be tripping over each other. >> you should be making tiger money. >> that would be amazing. i try not to compare myself to anyone else. i'm in a unique sport. i have a new line with a circumstancessicks. i'm partnering with dick's. >> tell us about that. >> it's partnered also with tribeca films. i think it's going to be a
feature length documentary and maybe it will live on the network. >> you went to stanford right? >> yes. >> you must know all these billionaires. >> we rub shoulders all the time. >> no. my life is very normal. i'm going to -- >> silicon valley. that's where you need to get your endorsements. >> i'm one of the best at -- i want to be one of the best. i'm one of the most blessed players around. i have amazing partners who help me chase my dreams. a lot of corporations get a bad name for funding athletes. we're helping to inspire. it's such an aspirational thing what company do as olympians. i'm beyond blessed and grateful. if i'm doing my job and kicking butt and taking names, then i'm happy and my sponsors are happy. >> how long every day do you still have to train? >> oh, man, it's my job literally. >> three or four hours every day. >> at least for sure. >> doing weights and stuff?
>> i do fast switch which is like olympic lifting, working on dynamics. >> i'm comparing what i do. >> there we go. not bad. >> what's the brain training? >> i work with a company that is a versus application and so i'm literally training my brain like it's a muscle. working on agility, my focus. >> are you answering questions? >> i'm playing a game. i have a headset on. it looks very sci-fi and it's amazing. at the highest level my sports psychologist taught me you're looking for the extra 1 or 2%. everyone is physical so you got to go mental. it's a difference maker. >> who else is good? >> the world. the world is good. >> who do you hear is really good? >> i know them all. i'm not concerned about any of them. and i say that only because they're all beautiful. everyone is human. i am so optimistic about -- >> who was the last time? i forgot. >> usa, usa.
>> who was good before that? >> china, brazil germany. literally the world is amazing at beach volleyball. it's our job as americans to set the tone set the standard and defend our title. that's my mission. >> we kind of count on you to get to the totals to win everything. >> i like that. >> when do we see the documentary? >> post rio for sure. they're going to follow my family and our partner and everything through rio. it's my job to get the happy ending in there. >> yeah. great ratings for nbc. >> and nbc has changed my life. we're very grateful to you guys. >> i'm nervous. the documentary is not going to be as good if you don't win. >> we don't talk athat way. no. no. no. >> that's why i set the goal. >> mental. brain training. >> it's hard to be positive when you know you're going to hit a bad shot. right, scott? hard to be positive when you know you're going to miss. >> it's a habit. >> congratulations and best of luck. it's going to be awesome. >> thank you guys.
up next jim cramer from the new york stock exchange and as we head to break another look at futures. by the time police arrive on a crime scene they could have little to go on. a vague description. a single piece of evidence. a partial plate number. with an app from ibm officers can now access over a billion police documents to find hidden connections and identify potential suspects. ibm analytics helps one hundred thousand officers work smarter every day.
let's get down to the new york stock exchange. jim cramer joins us now. i'm wondering what's most interesting to you after a wild day yesterday. we had that pretty good-sized sell off and then we came back. only off about 90. how does it feel to you? >> it's so weird. yesterday the setup was so bad. oil was going down. we know somehow it correlates with the market going down. the dollar was too strong. today china is doing better. the dollar is not doing much as all. a little bit weaker. oil is stronger. that's a positive setup. i know this is all very counter intuitive but this is a setup that you want to say hey, listening, maybe we should do some picking. i also have to tell you this i am amazed, this sets the whole tone boxalda. a spin off of baxter. it makes you recognize that what we've been missing are m&a
deals. they're back. that's going to put a better bid underneath the market. >> i just saw something yesterday, jim. every time apple has broken through its 200 day in the last i think they went back 10 years, it's not a bad thing historically with apple. usually it goes back up near term. do you think that happens again this time? >> it's such an interesting question. i was with a whole bunch of people who are both in the business and own the stock, and the guys in the business are shorting it, betting it goes to $107. the guys who own it are nervous. don't hear a lot of people buying it. in the past, we would say that's when we were contrarian. when i'm in a room full of people who hate a stock, maybe you take a look at it. >> that's when it gets complicated, when you have these
sophisticated guys who are scared but then three months ago, it was universally loved and priced for per fek. a certain group thinks it's going to go to a trillion dollars. then guys who are really in it and are nervous. >> and i know it's loved by a lot of analysts. people are trading it with china. it's like an overlay on the chinese market. so the chinese market was up yesterday. maybe it goes back up today. >> jim, we were asking people throughout the show if you had a choice if you would buy apple or exxon. let's say for the next two to three years. you can answer that if you want to if someone was to ask you that but if oil continues to go down, what that means for the market. >> well i think oil is going to test 4 $3 and if it olds $43, i
think this complex goes back up. i was dismayed by the exxon call. exxon was bullish and then they got bearish last week. chevron got very bearish. i'm going to take a growth stock over one with little growth that's a commodity play. look at conoco today. a downgrade. people say the dividend is okay but they need $90 oil. exxon does not. i don't want to be hostage to worldwide growth. i like that apple has new products. i like that they stopped selling phones in china. i'm going with apple. >> it's a market cap thing. i'm buying a whole company because i can. i get to buy two exxons for $700 billion but i only get one apple for that price. >> apple doesn't care if iran comes back on them. maybe tim cook has to say i'm taking numbers down because of
iran but i don't think he has to. >> apple is not motorola and the iphone is not a flip phone but i never would have believed that the flip phones were replaced. what do i know? >> that was a good point. there were people with apple watches on and they said if you go to the store, you're hearing more about the apple watch. it's not in the numbers i see. i think what people trade this off of is china. if you stabilize the chinese market apple goes higher. that's to the government. >> is it a good sign that exxon and chevron threw in the toulwel in? >> i thought it was. it came out and no one was listening. over the weekend they said it's not a v recovery or u recovery it's no recovery. if royal dutch, exxon and chevron say no recovery, shouldn't they all start thinking about recovery? they all liked it all the way
double down? i'm a little contrarian about all that. and a bidding war for twitter. >> we'll look forward to you guys coming up. >> and don't forget tonight the premier of west texas investors. it is must see tv. it is going to be great. "squawk box" will be right back. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet?
thanks for joining us. be back here tomorrow. "squawk on the street" is next. good tuesday morning this morning. i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. look futures relatively steady. ten-year remains relatively subdued right below 2.18. oil managing a small bounce just shy of $46. china got a lift as china